Some interesting research has been carried out for Co-op Insurance that reveals a high percentage of motorists find certain things to do with car insurance somewhat confusing. This research was undertaken last month with 2,000 motorists taking part in the survey.
It is rather concerning to read that 48% of those people responding to the survey felt that car insurance was confusing.
The biggest thing that people found confusing about motor insurance was the way that premiums were calculated. 51% of people found this difficult to understand. There are many factors that are taken into account when working out what premium to charge a customer. For instance, the policyholder’s age and the ages of anyone else allowed to drive the vehicle on the policy. A driver’s occupation has a bearing on the cost of providing the cover as does the make and model and age of the vehicle. What level of cover is required plus how many miles you estimate you will drive the car. Where you live and what the car is to be used for. If you have points on your driving license, this may affect the cost of the cover.
The second most confusing thing that people found about car insurance was why prices may change each year. When you receive your renewal notice you will be told what your new premium will be for the next 12 months. Insurers take so many factors into account that may affect the renewal premium such as the total amount that they have paid out in claims over the past year. For instance, if they have had to pay out more than the previous year then they may need to increase premiums for everybody.
Apparently, the research revealed that 15% of motorists felt that the only reason that they arranged car insurance was due to the fact that it was a legal requirement. Had it not been, they would not have bothered to arrange such cover.
It is interesting and good to hear that, as a result of this survey, Co-op Insurance has issued the first of three videos that explains how prices are worked out for car insurance. Let us hope that as many people as possible take the opportunity to watch the series of videos.